Author: Michael J. Lane Employee benefits are expensive. What is the hidden cost of cutting employee benefits to reduce overhead and expense?
The job market is tough out there, and the number of executives looking for employment far exceeds the number of jobs. As a company, you may be tempted to take advantage of that and reduce cost by cutting back on your offerings – namely various retirement and benefit plans.
Does it make sense and is it practical to reduce expenses by cutting benefits? What is the risk of cutting benefits from a human resources perspective?
You may wind up sacrificing talented employees and trained employees who become dissatisfied when their benefits are taken away. Studies prove that adding rewards is much easier than cutting benefits. Consider the impact on morale and potential employee turnover.
Talented executives know their worth and typically have realistic expectations of the types of benefits they need and want.
Benefits that a job-seeking executive looks for in an employer, and gives consideration to, include:
- Life and Disability Coverage
- Deferred Compensation Plans which may include 401-(k), 403-(b) or 457 plans
- Defined Benefit Plans
- Executive Long Term Care Insurance
- Bonus Plans
- Employer Sponsored Supplemental Life Insurance
- Employer Sponsored Supplemental Disability Insurance
- Employer Sponsored Individual Long Term Care Insurance
How does your company measure up? Many corporations are looking for ways to attract, retain and reward their key team members and executives. Our Executive Benefits Team can provide guidance and expertise in creating a customized plans to meet your long term objectives. We can also evaluate your benefits package to assure that you are receiving a competitive program.